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HP Inc.

Coordinates: 37°24′40″N 122°08′52″W / 37.4111842°N 122.1476929°W / 37.4111842; -122.1476929
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This article is about the 2015 successor of Hewlett-Packard. For the 1939 predecessor company, see Hewlett-Packard. For other uses, see HP (disambiguation).
Not to be confused with hap Inc..

HP Inc.
Company typePublic
IndustryInformation technology
PredecessorHewlett-Packard
FoundedJuly 2, 1939; 85 years ago (1939-07-02) as Hewlett-Packard, November 1, 2015; 9 years ago (2015-11-01)
FounderBill Hewlett

David Packard

(in 1939)
Headquarters
Palo Alto, California
,
U.S.
Area served
Worldwide
Key people
Products
RevenueDecrease US$53.72 billion (FY23)
Decrease US$3.456 billion (FY23)
Decrease US$3.263 billion (FY23)
Total assetsDecrease US$37.00 billion (FY23)
Total equityNegative increase US$−1.07 billion (FY23)
OwnerBerkshire Hathaway (11.82%)
Number of employees
c. 58,000 (FY23)
DivisionsHP Labs
SubsidiariesList of subsidiaries
Websitehp.com
Footnotes / references
Financials as of fiscal year ended October 31, 2023.
References:[1]

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, that develops personal computers (PCs), printers and related supplies, as well as 3D printing services. Founded in 2015 as the successor of the original Hewlett-Packard, HP Inc. is the world's second-largest personal computer vendor by unit sales after Lenovo and ahead of Dell, as of 2024.[2]

The company was formed on November 1, 2015, as the legal successor of the original Hewlett-Packard Company after the company's enterprise product and business services divisions were spun off as a new publicly traded company, Hewlett Packard Enterprise.[3] HP is listed on the New York Stock Exchange and is a constituent of the S&P 500 Index. In the 2023 Fortune 500 list, HP is ranked 63rd-largest United States corporation by total revenue.[4]

History

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Main article: Hewlett-Packard § History

Hewlett-Packard was founded in 1939 by Bill Hewlett and David Packard, who both graduated with degrees in electrical engineering from Stanford University in 1935. The company started off in the HP Garage in Palo Alto, California. On November 1, 2015, Hewlett-Packard was split into two companies. Its personal computer and printer businesses became HP Inc., while its enterprise business became Hewlett Packard Enterprise. The split was structured so that Hewlett-Packard changed its name to HP Inc. and spun off Hewlett Packard Enterprise as a new publicly traded company. HP Inc. retains Hewlett-Packard's pre-2015 stock price history and its former stock ticker symbol, HPQ, while Hewlett Packard Enterprise trades under its own symbol, HPE.[3][5]

As HP Inc.

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In May 2016, HP introduced a new PC gaming sub-brand known as Omen (reusing trademarks associated with VoodooPC), including gaming laptops and desktops (with the latter offering options such as CPU water cooling and Nvidia's GTX 1080 graphics, and promoted as VR-ready), and other accessories (such as monitors) designed to cater to the market.[6]

In May and August 2016, certain assets were sold to OpenText, including TeamSite and Exstream.

In November 2017, HP acquired Samsung Electronics' printer division for $1.05 billion.[7]

In February 2021, HP announced its acquisition of Kingston's gaming division HyperX for $425 million.[8][9] The deal only includes computer peripherals branded as HyperX, not memory or storage. The sale was completed in June 2021.[10]

In February 2022, HP announced it had acquired the Edinburgh-based packaging development company, Choose Packaging, in an effort to strengthen its capabilities in the sustainable packaging vertical.[11][12]

In March 2022, HP announced the acquisition of the California-headquartered communications software and hardware provider Poly Inc. in an all-cash transaction. HP said the cash amount agreed was $40 per share, which implied a total enterprise value of $3.3bn, inclusive Poly's net debts.[13]

Attempted merger with Xerox

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On November 5, 2019, The Wall Street Journal reported that print and digital document company Xerox was contemplating acquiring HP.[14] The company unanimously rejected two unsolicited offers, including a cash-and-stock offer at $22 per-share.[15][16] HP stated that there was "uncertainty regarding Xerox's ability to raise the cash portion of the proposed consideration" (especially given that Xerox is a smaller company in terms of market cap than HP), and noted the company's aggressiveness.[16] On November 26, 2019, Xerox issued a public letter defending allegations by HP that its offer was "uncertain" and "highly conditional", and declared its intent to "engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity."[17]

Xerox stated in January 2020 that it would propose the replacement of HP's board of directors during its next shareholder meeting in April 2020. In a statement to TechCrunch, HP disclosed a belief that Xerox's bid was being "driven by" activist shareholder Carl Icahn.[18] Xerox raised its bid to $24 per-share in February 2020.[19]

On February 21, 2020, HP instituted a shareholder rights plan to fend off Xerox's pursuit of a hostile takeover. Four days later, HP announced that, if shareholders rejected the Xerox purchase, it planned on offering $16 billion in capital return between fiscal 2020 and 2022, including $8 billion in additional share buybacks and raising its "target long-term return of capital to 100% of free cash flow generation". HP criticized Xerox's bid as a "flawed value exchange" based on "overstated synergies".[20][21] On March 5, 2020, HP rejected an offer at $24 per-share.[22]

On March 31, 2020, Xerox rescinded its bid to buy HP Inc, citing that "the current global health crisis and resulting macroeconomic and market turmoil" had "created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc."[23]

Products and operations

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See also: List of assets owned by HP
HP Pavilion Aero 13 notebook computer by HP (2021)

HP develops personal computers (PCs), printers and related supplies, as well as 3D printing services.[3][1]: 5–6  Its consumer PCs have been marketed under brands such as the Essential line and Pavilion (consumer), Envy and Spectre (high-end and prosumer), and Omen (gaming). HP's business computers are marketed under the "Pro" and "Elite" prefixes. It also manufactures the DeskJet, OfficeJet, and LaserJet series of printers.

In March 2015, HP announced that Bang & Olufsen would become the company's new premium audio partner for its computers and other devices. This replaced the partnership with Beats Electronics that ended upon being acquired by Apple Inc. in 2014.[24]

In May 2024, HP announced that its PC models would adopt a new branding nomenclature, with most of its consumer computer models (besides Omen) folded under the "Omni" brand, with "OmniBook" (a revival of Hewlett-Packard's old OmniBook brand that was originally defunct in 2002 after acquiring Compaq that year), "OmniStudio", and "OmniDesk" models.[25][26]

Corporate affairs

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In fiscal year 2023, total revenue of US$54 billion included US$24.7 billion from the sale of notebook computers, US$10.9 billion from the sale of desktop computers, US$11.4 billion from the sale of printer supplies, US$4.2 billion from the sale of commercial printers, and US$2.4 billion from the sale of consumer printers.[1]: 40–41  Over 65 percent of revenue in 2022 came from customers outside of the United States.[1]: 13 

HP's first quarter fiscal 2024 net revenue was $13.2 billion, representing a 4.4% decrease (4.9% in constant currency) year-over-year.[27][28] HP's strong operating activities in the first quarter of fiscal 2024 generated $121 million in net cash. The company also reported a positive free cash flow of $25 million for the quarter.[29][30][31] Free cash flow includes $121 million in net cash from operating activities, with adjustments of $62 million for net lease investments and $158 million for property, plant, and equipment investments.[32]

The key trends for HP Inc. are (as of the financial year ending October 31):[33][34]

Revenue (US$ bn) Net profit (US$ bn) Employees[35][36]
2015 50.4 3.7 ?
2016 48.2 2.6 49,000
2017 52.2 2.5 49,000
2018 58.1 5.3 55,000
2019 58.3 3.1 56,000
2020 56.5 2.8 53,000
2021 63.2 6.5 51,000
2022 62.0 3.1 58,000
2023 53.4 3.2 58,000

Sports sponsorships

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HP started involvement in Formula One sponsorship at the 2002 British Grand Prix, following the merger of Compaq and HP, replacing the former as title sponsor of Williams F1 from 2002 until 2005, which was known as a breakup between Williams and BMW.[37]

In July 2013 HP agreed to extend the sponsorship agreement with Tottenham Hotspur Football Club. This took over the original agreement between the club and Autonomy PLC who HP acquired. HP took over as the club's principal partner for the 2013–14 season.[38]

In February 2024 HP signed a 3-year sleeve sponsorship deal with Real Madrid, being the first sleeve sponsor of the club's 121-year history.[39]

In April 2024, it was announced HP had signed a "multi-year" deal to become the title sponsor for the Scuderia Ferrari Formula One team, extending to the team's F1 Academy and esports programmes. The HP logo will feature on both the team's 2024 car, the Ferrari SF-24, and the race suits of drivers Carlos Sainz Jr. and Charles Leclerc. Alongside the branding deal, HP will supply the team with services "ranging from computers, printers and other hardware to conferencing technology."[40]

Carbon footprint

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HP reported total CO2e emissions for the twelve months ending October 31, 2023, at 19,764,400 tonnes CO2-equivalent[41] and plans to reduce emissions 60% by 2025 from a 2015 base year.[42] According to a press release issued on April 20, 2021,[43] HP seeks to achieve net zero greenhouse gas emissions by 2040.

Controversies

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This article is about the company created in 2015. For information about controversies concerning the predecessor company, see Hewlett-Packard § Controversies.

Blocking third-party ink cartridges

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In 2016, HP introduced firmware in its printers that disabled the printers if users used ink or toner cartridges which did not contain “new or reused HP chips or electronic circuitry.” As a result, HP faced scathing criticism (such as that from the Electronic Frontier Foundation[44]) and paid millions in class-action lawsuits, such as to certain customers in the US ($1.5 million[45]), Canada ($700,000 CAD[46]), Australia, and Europe ($1.350 million[47]), but without admitting wrongdoing. HP's stated that the firmware was intended to provide "the best consumer experience" and "protect" customers from "counterfeit and third-party ink cartridges that do not contain an original HP security chip and that infringe on our IP."[48]

In 2023, PC World reported that HP printers still prevent users from using third-party ink.[49]

Disabling all-in-one printers

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In 2023, HP was sued over allegations that it intentionally designed its all-in-one printers not to perform scanning or faxing when they were low on ink.[50]

Disabling ink cartridges

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In February 2019, How-To Geek published an article reporting that HP remotely disabled ink cartridges when the user cancels their Instant Ink subscription.[51]

Xinjiang region

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See also: Xinjiang internment camps and Persecution of Uyghurs in China

In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including HP Inc, of being potentially connected to forced Uyghur labor in the Chinese Xinjiang province.[52]

In 2022, in response to the U.S. Uyghur Forced Labor Prevention Act, HP responded, "HP is committed to respecting human rights across our global supply chain and we prohibit the use of involuntary labor of any kind. HP also commits to respecting fundamental rights and freedoms defined in the United Nations (UN) Universal Declaration of Human Rights (UDHR) in an approach consistent with the UN Guiding Principles on Business and Human Rights (UNGPs) as outlined in our Human Rights Policy."[53][54]

Israeli conflicts

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In 2023, HP as well as Hewlett Packard Enterprise (HPE) has come under criticism for its products provided to the Israeli Police, Israeli Prison Service, and Israeli Population and Immigration Authority. The BDS movement has called for consumers and organizations to boycott all HPE IT services and products as well as printers, computers, and printer cartridges from HP Inc.[55]

Logo history

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Hewlett-Packard era (1954–2015)

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  • An outlined circle with the italic letters "hp" on it
    1954–1964
  • 1964–1981
    1964–1981
  • A dark blue rounded rectangle with a hollow circle, the stylized italic letters "hp" on it and the black words "HEWLETT PACKARD"
    1979–2008
  • A dark blue rounded rectangle with a hollow circle and the stylized italic letters "hp" on it
    1999–2008
  • A dark blue circle with the stylized italic letters "hp" on it
    2008–2014
  • A light blue circle with the stylized italic letters "hp" on it
    2012–2015

HP Inc. era (2015–present)

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  • A light blue circle with the stylized italic letters "hp" on it
    2015–present
  • Four black strokes representing the letters "hp"
    2016–present; alternative logo used on some computers since 2016

See also

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References

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  1. ^ a b c d "HP Inc. Fiscal 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. December 18, 2023.
  2. ^ "Gartner Says Worldwide PC Shipments Increased 0.3% in Fourth Quarter of 2023 but Declined 14.8% for the Year". Gartner. January 11, 2024. Retrieved January 11, 2024.
  3. ^ a b c Darrow, Barb (October 30, 2015). "Bye-bye HP, it's the end of an era". Fortune Magazine. Archived from the original on November 12, 2019. Retrieved November 1, 2015.
  4. ^ "Fortune 500". Fortune. June 5, 2023. Retrieved October 23, 2023.
  5. ^ See company history section of HP Inc.'s information page at the NYSE Web site Archived June 9, 2019, at the Wayback Machine
  6. ^ Kastrenakes, Jacob (May 26, 2016). "HP launches new Omen line of gaming laptops, desktops, and accessories". The Verge. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  7. ^ Choudhury, Saheli Roy (November 1, 2017). "HP completes purchase of Samsung printer business". www.cnbc.com. Archived from the original on March 18, 2021. Retrieved December 22, 2018.
  8. ^ "HP Inc. to Acquire HyperX". HP Press Center. February 24, 2021. Archived from the original on June 9, 2021. Retrieved June 12, 2021.
  9. ^ "HP is buying gaming accessory brand HyperX for $425 million". The Verge. February 25, 2021. Retrieved August 12, 2022.
  10. ^ "HP Inc. Completes Acquisition of HyperX". HP Press Center. June 1, 2021. Archived from the original on June 10, 2021. Retrieved June 12, 2021.
  11. ^ "HP acquires plastic-free packaging company Choose Packaging". Packaging Gateway. February 3, 2022. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  12. ^ "HP Inc. Acquires Choose Packaging". press.hp.com. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  13. ^ Gowran, Leigh Mc (March 28, 2022). "HP acquires Poly for $3.3bn to strengthen hybrid work portfolio". Silicon Republic. Retrieved March 28, 2022.
  14. ^ Lombardo, Cara (November 6, 2019). "Xerox Considers Takeover Offer for HP". The Wall Street Journal. Archived from the original on February 28, 2020. Retrieved November 6, 2019.
  15. ^ Franck, Thomas (November 7, 2019). "Xerox offers to buy HP for $22, sources say, more than 30% higher than where it traded a month ago". CNBC. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  16. ^ a b "HP rejects Xerox again, but leaves door open for negotiation". TechCrunch. November 25, 2019. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  17. ^ "Xerox tells HP it will bring takeover bid directly to shareholders". TechCrunch. November 26, 2019. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  18. ^ "Xerox wants to replace HP board that rejected takeover bid". TechCrunch. January 23, 2020. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  19. ^ Sebastian, Dave (February 10, 2020). "Xerox Raises Its Bid to Acquire HP". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 10, 2020.
  20. ^ Armental, Maria (February 25, 2020). "HP to Buy Back $15 Billion in Stock to Battle Xerox Takeover Bid". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  21. ^ "HP offers its investors billions in shareholder returns to avoid a Xerox tie-up". TechCrunch. February 25, 2020. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  22. ^ Sebastian, Dave (March 5, 2020). "HP Rejects Xerox's Raised Takeover Offer". Wall Street Journal. ISSN 0099-9660. Archived from the original on March 7, 2020. Retrieved March 9, 2020.
  23. ^ "Xerox Provides Update on Proposal to Acquire HP" (Press release). Xerox. March 31, 2020. Archived from the original on April 4, 2020. Retrieved April 5, 2020.
  24. ^ "HP makes Bang & Olufsen its new audio partner". CNET. Archived from the original on February 26, 2016. Retrieved February 21, 2016.
  25. ^ Cranz, Alex (May 20, 2024). "HP is simplifying its laptop lineup and embracing the AI PC". The Verge. Retrieved May 20, 2024.
  26. ^ Harding, Scharon (May 20, 2024). "HP resurrects '90s OmniBook branding, kills Spectre, Dragonfly". Ars Technica. Retrieved May 20, 2024.
  27. ^ "HP Inc. Reports Fiscal 1Q 2024 Results". Ink World. Retrieved April 17, 2024.
  28. ^ Discuss, GFreeman (February 29, 2024). "HP Reports Fiscal 2024 First Quarter Results". TechPowerUp. Retrieved April 17, 2024.
  29. ^ Nhi, Gia (April 8, 2022). "Why Is HP (HPQ) Up 6.7% Since Last Earnings Report?". Retrieved April 17, 2024.
  30. ^ Nhi, Gia (April 8, 2022). "Hoàng Hà PC". Forbes Việt Nam (in Vietnamese). Retrieved April 17, 2024.
  31. ^ "HP (HPQ) Q1 Earnings Match, Revenues Miss, Stock Falls 3%". April 8, 2022. Retrieved April 17, 2024.
  32. ^ "HP Inc. Reports Fiscal 2024 First Quarter Results". April 8, 2022. Retrieved April 17, 2024.
  33. ^ "HP Inc. Income Statement". WSJ. Retrieved July 23, 2024.
  34. ^ "HP Inc. Income Statement (2015-2019) - WSJ". February 25, 2020. Archived from the original on February 25, 2020. Retrieved July 23, 2024.
  35. ^ "HP: Number of Employees 2010-2024 | HPQ". www.macrotrends.net. Retrieved July 23, 2024.
  36. ^ "HP Inc. Number of Employees 1988-2023". Stock Analysis. Retrieved July 23, 2024.
  37. ^ "Williams F1 - WilliamsF1 goes HP". www.f1network.net. Retrieved July 22, 2024.
  38. ^ "Club announces HP as principal partner".
  39. ^ "Real Madrid and HP Announce Historic Global Collaboration". realmadrid.com. February 2, 2024.
  40. ^ "Ferrari announces HP as new F1 team title sponsor". April 24, 2024. Archived from the original on April 24, 2024. Retrieved April 24, 2024.
  41. ^ "HP Inc.'s Sustainable Impact Report for 2023Q4" (PDF). Archived from the original (PDF) on June 12, 2024.
  42. ^ "HP Inc.'s Sustainability Report for 2020Q4". Archived from the original on June 10, 2021. Alt URL Archived November 11, 2021, at the Wayback Machine
  43. ^ "HP Inc. Announces Ambitious Climate Action Goals".
  44. ^ Doctorow, Cory (September 26, 2016). "What HP Must Do to Make Amends for Its Self-Destructing Printers". Electronic Frontier Foundation. Retrieved May 16, 2023.
  45. ^ "HP Printer Firmware Case - Joseph Saveri Law Firm". www.saverilawfirm.com. April 25, 2019. Archived from the original on November 4, 2022. Retrieved August 4, 2023.
  46. ^ "Lex Group Attorneys / Avocats - Montreal | HP OfficeJet Printers – Dynamic Security / Non-HP Ink Cartridges – Canadian Class Action Settlement". April 24, 2019. Archived from the original on May 25, 2023. Retrieved August 4, 2023.
  47. ^ "HP and Euroconsumers settle on Dynamic Security | Euroconsumers". www.euroconsumers.org. Archived from the original on June 25, 2023. Retrieved August 4, 2023.
  48. ^ Harding, Scharon (March 9, 2023). "HP outrages printer users with firmware update suddenly bricking third-party ink". Ars Technica. Retrieved May 16, 2023.
  49. ^ "HP printers still block third-party ink. These models have a workaround". PCWorld. 2023.
  50. ^ "Lawsuit claiming HP all-in-one printers are defective can proceed". Reuters. August 11, 2023. Archived from the original on August 16, 2023. Retrieved September 8, 2024.
  51. ^ Hendrickson, Josh (February 8, 2019). "HP's Ink Subscription Has DRM That Disables Your Printer Cartridges". How-To Geek. Retrieved May 6, 2024.
  52. ^ Xu, Vicky Xiuzhong; Cave, Danielle; Leibold, James; Munro, Kelsey; Ruser, Mathan (March 1, 2020). "'Re-education', forced labour and surveillance beyond Xinjiang". Australian Strategic Policy Institute. Retrieved April 5, 2022.
  53. ^ "Company responses regarding commitments to apply a single global standard aligned with Uyghur Forced Labor Prevention Act (UFLPA)". Business & Human Rights Resource Centre. September 14, 2022. Retrieved July 30, 2023.
  54. ^ "Company Response: HP responded". Business & Human Rights Resource Centre. October 12, 2022. Retrieved July 30, 2023.
  55. ^ "Boycott HP- Campaign Update during #GazaGenocide". BDS. December 13, 2023. Retrieved January 12, 2024.
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37°24′40″N 122°08′52″W / 37.4111842°N 122.1476929°W / 37.4111842; -122.1476929

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